Super Star in & as LINGAA ♠Anushka ♠ARR ♠KS Ravikumar

[Avadi to America]

Let me explain:

A distributor is not an end consumer. End consumer is the movie-goer, who pay for ticket and watch the movie. So, the $550 example doesnt suit here. A distributor is a part of the business. In Samsung's case also there will be distributors and wholesalers who will sell to retail stores, which will sell to customers. Among the contracts between the manufacturer and distributor , it could be a buy-back contract, where the seller will buy back the unsold goods or revenue sharing contracts etc. In Linga's case Manufactuer = producer and distributor = distributor.

In this case of Linga, there is a clear case of one-sided contract, where the risk-sharing and profit-sharing is completely benefiting producer, where the risk is pushed to distributor and the distributors are not getting benefits for taking the risk. There is a chance to call that in a environment where the corporate guys do business with small time distributors, they can exploit.

If he just sign one side contract, then he looks beyond monetary benefits from the deal.. that's how you should take not as fool/victim? For me, 8C investment is not a fool's business. if he had hit jackpot then he would have gained lot more than monetary benefit....